Home insurance prices remain flat

Healthy competition is keeping home buildings and contents insurance prices in check, new figures show.

The latest analysis from data analytics provider Consumer Intelligence reveals that average bills for home insurance are up just 2.1% in a year. This is in line with the UK’s headline inflation rate, suggesting that costs are being kept flat by competition in the market.

Across Britain, the average buildings and contents policy now stands at £136.

As in previous years, the highest average premiums are in London. Households in the capital now pay £187 for an average buildings and contents policy — almost 60% more than in the cheapest region, the North East (£119). Even the South East is still a third cheaper than London, with average premiums costing £140.

Wales was the only region to see home insurance premiums fall in the last 12 months, with average prices down 0.3%. The South East (4.1%) saw the biggest rise over the same period, followed by the Eastern region (3.4%) and the West Midlands (3%).

Victorian-era properties, built before 1895, continue to carry the highest annual premiums in the market at £162. Those built from the turn of the 20th century to just before the outbreak of the First World War (1895-1910) follow closely behind at £146.

At the other end of the pricing scale, properties built between 1985 and 2000 are now the cheapest to secure home insurance against (£126), with those built after 2000 attracting premiums of £133.

“Home insurance is a very competitive marketplace, helping to keep overall pricing down,” commented John Blevins, pricing expert at Consumer Intelligence.

“London unsurprisingly maintains its number one spot with some of the most expensive properties in the UK and the biggest urban area — with cities generally having a much higher crime rate.”

Discussing the price variation found across Britain, Blevins said: “Regional pricing is based on localised claims experience — looking at general perils such as fire, accidental damage but also specific areas such as crime rates, weather events and subsidence.

“And with subsidence claims levels reaching a peak this year, areas where the weather tends to be drier — such as the South East — have seen higher rates of subsidence.”

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